November 16, 2016


The Price Of Sin May Be Going Up (Thomas Pellechia , 11/15/16, fORBES)

Right now, the excise tax on spirits is based on alcohol proof and it comes out at about 21 cents per ounce of alcohol. Both beer and wine are taxed not on alcohol content but on total liquid volume, a formula that taxes regular beer (up to 5% alcohol) at approximately 10 cents per ounce and wine (up to 12% alcohol) at about 8 cents per ounce of alcohol. The CBO recently called for changing the formulas, a move that would increase rather than lower the excise tax.

The CBO report stated the federal government's excise tax take for 2012 was $9.7 billion, the agency also said, " Last raised in 1991, current excise tax rates on alcohol are far lower than historical levels when adjusted for inflation ."

CBO recommends leveling the playing field by taxing alcohol proof on all beverage alcohol products, and raising the rate. The agency stated:"The tax would be raised to $16 per proof gallon, thus increasing revenues by $64 billion over the 2014-2023 period, the staff of the Joint Committee on Taxation estimates." 

Posted by at November 16, 2016 1:18 PM


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